Corporate Accounting & Reporting

CORPORATE ACCONTING &
REPORTING

Accounting
1. Presentation of Acquisition analysis
Computation of Assets taken over
1.7.17 30.6.18
Share Capital 54,000.00 54,000.00
Retained Earnings 36,000.00 44,300.00
Asset Revaluation Reserve 18,000.00 20,000.00
Inventory revaluation 1,400.00 140.00
Machinery revaluation 1,050.00 840.00
Total 1,10,450.00 1,19,280.00
Post Acquisition Profit 8,830.00
Payment of consideration 1,10,000.00 1,10,000.00
Goodwill on Acquisition -
450.00
In our calculation it is seen that there is a net gain on such acquisition of $450 and net fair
value of assets acquired is $110450 and consideration paid is $110000. There is deferred
consideration as all the amount is paid upfront and no other liability is to be paid after date of
acquisition. It is assumed the consideration paid for purchase is given in cash or via bank or
in equity shares of Ethan Ltd as we do have any information about opening share capital of
Ethan Ltd nor any other mode of payment of purchase consideration.
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